ISSN 1822-6760.

Management theory and studies for rural business and infrastructure

development. 2008. Nr. 15 (4). Research papers.

HUMAN RESOURCE DEVELOPMENT SYSTEM IN THE CONTEXT OF

PUBLIC MANAGEMENT REFORM

Jurgita Šiugždinienė
Kaunas University of Technology
The fundamental changes associated with public management reforms calls for a signifi-
cant transformation of the human resource function in general and human resource development
responsibility in particular. Therefore, the article seeks to develop and substantiate the theoretical
model of the human resource development system in the context of public management reform
and to verify it by examining congruence of enabling characteristics of the strategic HRD system
with those in Lithuanian central and local government institutions. The results of the empirical
research have revealed that there is limited congruence between the theoretical model of strategic
HRD system in the context of public management reform and the current HRD system in the
central and local government institutions of Lithuania. The Lithuanian HRD system is not strate-
gically mature in HRD terms and the majority of enabling characteristics are not in place yet.
Keywords: human resource management, human resource development, learning organi-
zation, organizational development.

Introduction

The public sector, especially in new EU member states and those aspiring to
join EU structures, is under big pressure to improve its performance and provide
quality services with fewer resources. New technology, new ways of organizing
work, new means of delivering services and an increasing reliance on temporary
employment have redefined the nature of public service. Duties are becoming mul-
tifaceted and very complex: they may encompass policy advice, management of
human, financial and other resources, the provision of critical services and others
(United Nations, 2005). Meeting these challenges requires a unique combination of
knowledge, skills, attitudes and effective human resource development systems, as
well as policies and strategies to nurture these competencies.
This calls for a significant transformation of the human resource function in
general and human resource development (HRD) responsibility in particular, crea-
ting particular opportunities for civil servants to develop and enhance the necessary
capabilities and encourage greater self-development opportunities to facilitate an
effective implementation of public management reforms.
The HRD function has been extensively researched by many foreign and
Lithuanian scholars. It has been investigated from different perspectives, including
the examination of dominant paradigms, roles and status of HRD and as well as the
link between business strategy and HRD (Sambrook, 2004; Garavan, Gunnigle et
al., 2000; Simmonds and Pedersen, 2006; Smith, 2004; Sloman and Philpott, 2006;
Senge, 1994; Auluck, 2006; Auluck, 2007; Gibb, 2003). Importantly, several Lit-
huanian scholars have carried out extensive research in different areas of HRD, for
instance focusing on HRD strategies (Chlivickas, 2007), analyzing development

180
trends and models of HRD (Sakalas, 2001; Kumpikaite and Sakalas, 2005) and
evaluation of HRD efficiency (Kumpikaite and Sakalas, 2004).
However, despite extensive research in the area of HRD, the scientific dis-
cussion requires singleness and a more systematic approach.Variuos studies ac-
knowledge the potential of HRD to leverage and facilitate the implementaion of re-
forms; however, the theoretical and practical nature of these relationships receives
amazingly scant attention (Luoma, 2000).
Therefore, the key scientific problem addressed by this article is the lack of a
consistent theoretical perspective and a systematic approach to the HRD system in
the context of public management reform. In this context, the main goal of the re-
search is to develop and verify theoretical model by examining congruence of
enabling characteristics of the strategic HRD system with those in Lithuanian cen-
tral and local government institutions.
A comprehensive analysis of the scientific literature was carried out for the
theoretical exploration of the problem. Qualitative and quantitative research met-
hods were utilized in the research.
The article is organized into five main sections. Thus, the first and the se-
cond sections provides the conceptual framework for the research and deals with
the theoretical background for the understanding of the context of public re-
forms,as well as analysis of different perspectives of HRD. The third section pre-
sents and discusses the theoretical model of the HRD system in the context of pub-
lic management reform. In the fourth part the methods of the empirical research are
briefly described and the last section the results of the empirical research carried
out in central and local government institutions of Lithuania are presented and the
congruence of the theoretical model of HRD system with current HRD system in
Lithuania examined.

Theoretical context of public management reform

Over the last two decades, public management has undergone substantial
changes in both developed and developing countries. Public sector reforms have
focused on the efficiency of governments seeking to transform traditional bureauc-
ratic system of public administration to market oriented, results–driven system of
public management. The role of the state was to be reduced and what remained
was to be subject to enhanced political direction, increased managerial discipline
and greater responsiveness to citizens (Aucoin, 1995). There was a call for “rein-
venting“ government on the basis of a market economy (Osborne and Gaebler,
1993) and it has become common to talk about the emergence of the new model of
public administration – New Public Management – as a collection of ideas and
practices that emphasize competition between service providers, a new mix of state
and market under provision of collectively financed services, decentralization, fre-
edom of choice for citizens, and more responsive management (Hood, 1991).
Public management reform is an evolving, hybrid phenomenon with diverse
and complex body of ideas and practices. In this article the term “public manage-
ment reform” is used to describe different reform efforts related to modernization

181
of public administration. In terms of comprised elements, tools and techniques,
public management reform provides a “shopping basket” from which reformers
can choose according to the local conditions and priorities. Many authors such as
Pollitt and Bouckaert (2001), Hood (1991), Aucoin (1995), Osborne and Gaebler
(1993) have described and categorized different trajectories of the reforms which
can be grouped into four key areas, such as (1) the introduction of market mecha-
nisms (the move from service delivery to its regulation, the creation of quasi mar-
kets, and outsourcing); (2) Devolution of authority (the move away from hierarchi-
cal structures to devolved management structures, accompanied by devolved bud-
gets and HRM; increased managerial autonomy and the establishment of agencies);
(3) Performance management (the move from inputs in management and the bud-
geting processes towards outputs and outcomes); (4) Civil service reform and de-
centralization of human resource management. The fourth area, because of its rele-
vance to this article will be discussed in more detail.
Decentralization of human resource management
In order to carry out the above mentioned reforms successfully there is a ne-
ed not only to guarantee legally correct application of laws and various reform stra-
tegies, but to ensure that competent and professional civil servants are in place that
are able to lead and implement the envisaged reforms. Individualization of civil
service arrangements and decentralization of HRM/HRD responsibilities are seen
as a way of overcoming the inefficiency and rigidity in the public sector and are
expected to offer flexibility and responsiveness needed for effective administration
of public agencies (Coggburn, 2005). According to Osborne and Gaebler (1993)
the authority should be pushed downward in the organizational hierarchy as much
as possible, so that managers within individual agencies would be “empowered” to
run their organizations more effectively.
Thus, agencies and departments assume fuller authority over core HR func-
tions, such as recruitment, selection, training and development, classification,
compensation and promotion. Under such an approach, control activities are con-
ceded for a more proactive and involved function of HR and the central personnel
agency is called to shift from its customary control orientation to a new consultant
or adviser role (Kellough and Selden, 2003; Coggburn, 2005). Furthermore, there
is a move towards individualization of civil service arrangements related to the se-
lection process, the terms of appointment, termination of employment, pay and
performance management.
However, despite of the efforts to improve HRD function in the context of
ongoing reforms the following challenges remain and are emphasized by different
authors (Hockey, Kakabadse et al., 2005; Maor, 2000; Gibb, 2003). For instance,
lack of systematic approach and very fragmented and reactive nature of the trai-
ning and development function, poor alignment of training and development with
institutional strategies and performance appraisal systems, as well as the inability
of HRD specialists to assume a strategic role in addressing organizational pro-
blems, other.
Thus, it is evident that current approaches to HRD are insufficient to ensure
the development of a new set of competences of civil servants and to create an

182
enabling environment within government institutions that enhance the organiza-
tion’s capacity to take on large scale learning process associated with major cultu-
ral and procedural change (Koch, 1999) brought by public management reforms.
Therefore, the next section will discuss different perspectives of HRD in or-
der to better understand the role of HRD and its possible contribution in contempo-
rary organizations.

The strategic role of human resource development in the context of public

management reform

HRD has derived its conceptual basis from three broad areas of organizatio-
nal theory, economics and psychology (Sambrook, 2004). Based on Garavan et al
(1999) the psychological perspective promotes motivation, learning and ownership
issues. It tackles the issue of a psychological contract which is attempting to con-
ceptualize the employment relationships using notions of expectations, perceptions
and obligations. Organizational theory focuses on organizational learning proces-
ses and change. It also deals with the establishment of a learning organization. The
economic dimension emphasizes investments in human capital and focuses on re-
source-based theories.
Hence a universally accepted definition of HRD is non-existent, several
scholars have attempted to define HRD or identify its essential elements. The con-
cept of HRD is used to convey different meanings, including those that frame HRD
as a synonym for training and development (Trehan, 2004). For the purpose of this
article HRD is defined as a process of facilitating long-term work related learning
capacity at an individual, group and organizational levels through structured and
unstructured learning and non-learning activities to enhance organizational per-
formance.
The „learning organization” and “performance” can be named as key per-
spectives to discuss HRD, however, we are in consent with Simmonds and Peder-
sen (2006) that the future of HRD lays in the need to take into account and encom-
pass the inextricably interrelated paradigms. In addition to that the principles of
systems theory tell us that no one element of a system can be viewed separately
from other elements. Intervening in only one element of the system without crea-
ting congruence in other parts of the system will not lead to systemic change. The-
refore even if HRD is increasingly concerned with facilitating the learning of indi-
viduals, teams and organizations as a key to the organizations sustainable competi-
tive advantage the success of HRD policies will be measured by its impact on bu-
siness performance.
The strategic approach to Human Resource Development
The fact that the employees today can be competitive advantage of a compa-
ny has influenced the interest in strategic HRD questioning how in such an unstab-
le environment, the HRD profession can contribute strategically to the success of
an organization, through development of its employees. Strategic HRD has become
an important component of HRM as a means to improve performance and organi-
zational effectiveness (Horwitz, 1999). According to McCracken and Wallace

183
(2000b) strategic HRD comprises the creation of a learning culture, within which a
range of training, development and learning strategies both respond to corporate
strategy and also help to shape and influence it. Similarly, Burgoyne (1997) and
Walton (1999) emphasize HRD provision which is conscious and proactive rather
than unplanned; it focuses on the maturity of HRD provision to reflect organizatio-
nal growth and clearly envisages that HRD interventions are valuable only to the
degree that they facilitate the organization in achieving its goals. Based on the pre-
sented definitions we can say that the strategic HRD is a means to improve organi-
zational performance through the establishment of strong HRD links with organi-
zational goals and strategies as well as the strategic leveraging of learning and de-
velopment processes to generate and enhance appropriate behavior and competen-
cies of an organization.
The strategic HRD approach maintains a strong focus on adopting a learning
organization perspective and the application of the learning approach to strategy,
as well as the shift away from individual concepts of training and development to-
wards more integrated concept called learning. McCracken and Wallace (2000b)
emphasize the importance and interrelation with the learning culture and Horwitz
(1999) suggests that a key focus of strategic HRD is the creation of a learning envi-
ronment and structural design which promotes learning and development for per-
formance improvement and competitiveness. Key characteristics of strategic HRD
discussed by different authors are the following: HRD is proactive in shaping or-
ganizational strategy and it is well integrated with HRM, HRD specialists have in-
novative and strategic roles and facilitate change, line managers assume responsi-
bility for HRD and top managers are committed to HRD. The cost effectiveness
evaluation is taking place and the organization has become strategically mature in
HRD terms and a strong learning culture.

Theoretical model of human resource development system to facilitate the im-

plementation of public management reform

In a period of such rapid organizational change as discussed in the first sec-

tion, the consequences, challenges and changes related to contracting out, decentra-
lization, and empowerment mean that civil servants need to be more flexible and
undertake continuous learning rather than periodic training (McCracken and Wal-
lace, 2000a). Hence, this calls for significant transformation of the HRD system to
reflect the demands of public management reform by creating a learning compe-
tence or capacity within the government institutions to generate new knowledge
and facilitate learning on a continuous basis.
Based on the discussion above we can conclude, that HRD system will be
perceived as having strategic value in the context of public management reform,
only if it has the capability to develop a supportive environment for learning, whe-
re there is a clear connection between HRD and the strategic goals of the govern-
ment institutions, which in turn has been aligned with objectives of public mana-
gement reform. Consequently, institutional strategy of the government institution
needs to be expressed in the behavioral terms and implemented through the strate-

184
gic HRD system, which facilitates learning and generates appropriate behaviors
and competencies needed to implement the goals of public management reform
and does this on a continues basis.
Therefore, the suggested theoretical model of HRD system is based on the
strategic HRD approach promoted by number of scholars such as Garavan T.N,
Heraty N., McCracken M. and Wallace M, Wognum A. A. M, Hockey J, Kakabad-
se A., Kakabadse N., Luoma M. and others. It integrates two main perspectives –
learning and performance. The model has been built on the premise that strategic
HRD is a prerequisite for the learning culture to emerge and for the learning orga-
nization to develop. Strategic partnerships between key stakeholders – HRD spe-
cialists, line managers and civil servants – are also central for strategic HRD to
emerge.
Proposed theoretical model of strategic HRD system defines strategically
matured government organization in HRD terms, which has the capacity to learn
and diffuse knowledge effectively and where HRD is shaping organizational stra-
tegy. HRD is not anymore limited to training, but extended to facilitating and sup-
porting learning processes within an organization focusing on different forms of
learning, including informal and incidental learning (Buyens, 2001). Learning is
regarded as a normal part of everyday work and working is seen as a rich source of
learning.
HRD shaping the mission and goals of the government institution is at the
core of the model. If HRD reaches the position of being able to shape organizatio-
nal strategy, then, we can argue, it will be in the position to shape organizational
culture.
The model proposes to divide the process of strategic HRD into three stages
– formulation, implementation and evaluation. The first stage is the formulation of
the institutional strategy, which is shaped and influenced by HRD. The second sta-
ge is implementation of HRD systems based on the HRD strategy aiming to gene-
rate appropriate behaviors and competencies. The final stage is evaluating and re-
viewing the effectiveness of HRD strategy. It is a holistic and dynamic model and
the three stages are closely interlinked.
Each stage has enabling characteristics, which are crucial to facilitate the
process of strategic HRD. Presence or absence of these characteristics would influ-
ence the level of HRD maturity in government institutions and would anticipate the
success of implementation of Public Management reform. As presented in the mo-
del, the enabling characteristics are attached to each of the three stages, assuming
that particular set of enabling characteristics have a bigger influence at a particular
stage. At the same time, it is evident that enabling characteristics are important and
have a significant influence on the entire HRD system.
HRD policies are not implemented in the isolated public administration en-
vironment. Based on Hall (1996) environmental context plays a crucial role in ins-
titutionalization processes in organization. Values, goals and procedures become
strongly established not because managers choose them as a most efficient means,
but in most cases as a result of environmental influences and exchanges. Consequ-

185
ently, various external factors very much influence HRD strategies and systems,
and needs to be taken into account.

Research goal and data collection methods

The main goal of the research is to verify the theoretical model by exami-
ning the congruence of enabling characteristics of the strategic HRD system with
those in Lithuanian central and local government institutions and identify the gaps
to be addressed. The research object – the Human Resource Development system
in Lithuania.
In order to define key factors qualifying enabling characteristics a methodo-
logical framework has been constructed to clarify and focus the research issues to
be explored in the empirical survey. The framework defines key factors to qualify
enabling characteristics presented in the theoretical model of strategic HRD sys-
tem. It provides evidence based assessment tool and facilitates the identification of
the gaps in the HRD system in the context of public management reform.
Qualitative and quantitative research methods were utilized in the research.
Firstly, the quantitative survey has been performed to assess the enabling characte-
ristics of HRD system. Secondly, semi-structured in depth interviews with selected
experts have been carried out to clarify and follow up on different outstanding is-
sues and details of the HRD system in the selected central and local government
institutions. Finally, document analysis has been carried out to supplement the evi-
dence obtained in the survey and interviews, and to establish some evidence to as-
sess the presence of characteristics unobservable via survey/ interviews.

Conclusions

The findings of the empirical study on the enabling characteristics of the

strategic HRD system in the context of public management reform in Lithuania re-
vealed “weak” evidence of a majority of enabling characteristics and confirmed
that there is limited congruence between the theoretical model of strategic HRD
system in the context of public management reform and the current HRD system in
the central and local government institutions of Lithuania. The Lithuanian HRD
system is not strategically mature in HRD terms and the majority of enabling cha-
racteristics are not in place yet. Therefore we can conclude that the current HRD
system in Lithuania is not able to ensure the successful implementation of signifi-
cant changes associated with public management reform.

186
 NATIONAL DEVELOPMENT STRATEGY
74 F ENABLING CHARACTERIS-
Public Management Reform ENVIRONMENTAL CON-
O TICS:
strategy TEXT:
R Policy and legal:
M * Supportive national policy * Demographic shifts
U * Open, merit based civil service * Skills available in the la-
L system bor market
A * Integrated planning system INSTITUTIONAL STRATEGY * Technological and market
T Cultural: changes
I * Senior management leadership SUPPORTING SHAPING * Quality of tertiary educa-
O * HRD shaping organizational HRD STRATEGY tion
N strategy * Stakeholder interest
* Cultural conditions

I ENABLING CHARACTERIS-
M TICS: HRD systems
HRM
P Structural
L * Relevant organization of HRD Top/senior
E function managers
HRD
M Cultural
E * Supportive learning environment
N Operational
T * Integration and strategic part- Line
A nership with HRM Civil
Civil
servants
T * HRD specialists as organizational
I change consultants ser Strategic partnerships
O * Strategic partnership with line
N managers

E ENABLING CHARACTERIS-
V TICS: HRD effectiveness evaluation
A • Goal achievements / outcomes
L * Formalization of evaluation • Competency of HR
U • Efficiency of processes
* Scope of evaluation
A
T
I
O
N

Figure 1. Theoretical model of strategic HRD system to facilitate implementation of public management reform
(Source: Offered by the author)

187
 The conclusion presented above is validated by the following main findings:
The overall policy environment in the Lithuanian public sector is relatively
supportive for strategic HRD/training to emerge and develop. However, several shor-
tages have been identified by the research, which impact on the development of stra-
tegic HRD approach, namely: (1) national HRD policy is absent and HRD function is
mainly identified with “training” and limited to formal training activities as prescribed
by the civil service legislation; (2) the HRD approach is also restricted by an ineffec-
tive performance management system, where individual performance goals are poorly
linked with the strategic objectives of the department and institution;
Although senior management is widely perceived to provide a supportive role
for HRD/training, they are not seen as playing a proactive and strategic role in leading
and shaping HRD/training policies and strategies. There were few indications that
such support went beyond passive compliance into anything remotely resembling the
active leadership as defined in the methodological framework.
There is little evidence of integration between HRD and institutional strategy
and definitely a strategy shaping role of HRD is not yet in place. HRD/training still
appeared to be reactive and operational in most central and local government institu-
tions.
The most prevailing roles of HRD specialists still link strongly to traditional
training practices. A more reactive role as training organizer is most prominent in the
central and local government institutions. Analysis has disclosed that HRD/training
specialists have not yet developed expanded roles as innovators and organizational
change consultants. However, there were some encouraging indicators that
HRD/training specialists were adopting consultancy roles in their institutions and so-
me of them are becoming more involved at a strategic level.
Line managers have not assumed the responsibility for HRD/training of their
subordinates yet. It was confirmed that it is difficult to fulfill this role, either because
of their work load or lack of skills in this field. Cooperation between line management
and HRD/training exist, however a lack of line managers’ support and involvement in
HRD issues indicates that the strategic partnerships suggested by McCracken and
Wallace (2000a; 2000b) as an indicator of strategic HRD does not exist in the central
and local government institutions of Lithuania.
HRD and HRM integration is insufficient and there are lack of relevant mecha-
nisms to sustain and reinforce appropriate competencies and behaviors generated by
HRD with the help of other domains of HRM – selection, appraisal, rewards and
communications.
There is little evidence for the emphasis on HRD/training evaluation. Central
and local government institutions mainly evaluate HRD/ training activities based on
Kirkpatrick’s level 1 – assessing immediate learners’ feedback, which is usually car-
ried out by training organizations. There is no evidence for an emphasis on cost effec-
tiveness of HRD evaluation.

188
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ŽMOGIŠKŲJŲ IŠTEKLIŲ VYSTYMO SISTEMA VIEŠOJO VALDYMO

REFORMOS KONTEKSTE
Jurgita Šiugždinienė
Kauno technologinis universitetas

Santrauka
Straipsnyje aptariami fundamentalūs pokyčiai, susiję su viešojo valdymo reforma, kurie rei-
kalauja iš esmės keisti žmogiškųjų išteklių vystymo funkciją, kuriant palaikančią aplinką ir sudarant
galimybes valstybės tarnautojams nuolatos stiprinti ir tobulinti reikalingas kompetencijas. Straipsny-
je analizuojamos pagrindinės viešojo valdymo reformos kryptys, pokyčiai, susiję su žmogiškųjų iš-
teklių valdymo decentralizacija, valstybės tarnybos reforma, taip pat atliekama teorinių požiūrių į
žmogiškųjų išteklių vystymą analizė. Remiantis teorinės analizės rezultatais parengtas ir straipsnyje
pristatytas teorinis žmogiškųjų išteklių vystymo sistemos modelis bei patikrintas šio modelio pritai-
komumas Lietuvos centrinės bei vietinės valdžios institucijose. Remiantis atlikto tyrimo rezultatais
nustatyta, kad atitikimas tarp teorinio strateginės žmogiškųjų išteklių vystymo sistemos modelio vie-
šojo valdymo reformos kontekste ir esamos žmogiškųjų išteklių vystymo sistemos Lietuvos valdžios
institucijose yra ribotas. Nustatyta, kad Lietuvos žmogiškųjų išteklių vystymo sistema nėra strate-
giškai subrendusi ir dauguma indikatorių, patvirtinančių sistemai galimybių suteikiančių charakteris-
tikų egzistavimą, nėra akivaizdūs. Straipsnyje daroma išvada, kad šiuo metu esanti žmogiškųjų iš-
teklių vystymo sistema Lietuvos valdžios institucijose nepakankamai užtikrina sėkmingą reikšmingų
pokyčių, susijusių su viešojo valdymo reforma, įgyvendinimą.
Raktiniai žodžiai: ištekliai, išteklių vystymo sistema, kryptys, modelis, valdymo reforma.

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